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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (103278)6/19/2008 11:56:42 AM
From: CommanderCricket  Read Replies (1) | Respond to of 206099
 
How do we reconcile that as long as demand is above supply, something has to give going into the 4th quarter. Inventories need to be rebuilt for next winter.

Who's going to give up their supply?

It's not going to be China or the Middle Eastern consumers. The 15% raise in prices will give the Chinese refiners some breathing room but it won't cut demand.

This knee jerk reaction every time there is evidence or perceived evidence of demand destruction, the equities sell off.

It's a given, there has to be demand destruction.

Take advantage of these sharp sell off's.



To: Cogito Ergo Sum who wrote (103278)6/19/2008 12:01:59 PM
From: Elroy Jetson  Read Replies (2) | Respond to of 206099
 
China has been experiencing serious diesel shortages for months, where truckers often waited for days for a station to be resupplied.

This meant a serious loss of productivity.

The diesel price hike will rebalance internal demand to their own refinery supply, eliminating trucker down-time while rationing out less economic diesel usage.

I doubt China's overall oil consumption will change.
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